Foreign owner tax forms for renting DVC..?

[Madame]

I posted this on the DVC Mouscellaneous board, but haven't got an answer yet. Thought I'd try here as I know many are renting out their points b/c of the lifeless loonie ...

On FB today & a Canadian DVC owner mentioned they can't rent their points out b/c they didn't fill out the foreign owner tax forms. Can anyone fill me in? I doubt we'll ever rent out our points, but this would be good to know.

 

[mort1331]

Not sure what their talking about. I have rented my points for a number of years. Are we supposed to claim the amount as income, probably, but I seemed to have forgotten how much I charged..hmmm...Try to remember for this year.
Now if you sell I know that the US holds back 15% (up from 10 just last year) as a tax. You can get most back because it is supposed to be the difference between buy and sell price.
BTW we have a US account with RBC to pay our dues monthly and that is where our "rent" goes and pays direct in US funds.

 

[Madame]

Not sure what their talking about. I have rented my points for a number of years. Are we supposed to claim the amount as income, probably, but I seemed to have forgotten how much I charged..hmmm...Try to remember for this year.
Now if you sell I know that the US holds back 15% (up from 10 just last year) as a tax. You can get most back because it is supposed to be the difference between buy and sell price.
BTW we have a US account with RBC to pay our dues monthly and that is where our "rent" goes and pays direct in US funds.

Did you rent out here on the boards or through a service? She was trying to rent her points out through a service & was told no without this form...

 

[mort1331]

I have rented both with Daves, which is Canadian, and now by myself. I responded to your other post too.
PM me if you have any other details about the tax if you want

 

[thetallone101]

I saw that post in the group too! I guess they want you to claim the $ you are making off of the points

 

[pangyal]

I just posted in your DVC thread . They want an ITIN number.

 

[migel]

I'm assuming they are considering this the same as owning a rental property in the US. Any income must be declared to the IRS; in rental scenarios Canadians can choose to have 30% of the gross income deducted from all rentals so they do not have to file a US tax return. Option 2 is to file a US tax return where you can claim most expences against your income, thereby reducing the 30% substantially. But you still have to claim this income on the Cnd tax return, hopefully the foreign tax credit means you don't get taxed twice. Problem is, once you file a US return, you have to file every year, regardless if you have any income or not, until you no longer own the property. Like the DVC issue, an ITIN number is required.

 

[wendyt_ca]

I own DVC and a timeshare in Vegas and do not have an ITIN number. I have never rented DVC but our other week comes every 3 years and we have rented it twice and have never claimed anything with it. But the timeshare rents it for us and we put that we don't have that number and they just deduct something off it. TBH if I rented my DVC I probably wouldn't even think to claim it.